Ukrainian banks are still more active in lending to the public than business: for example, according to the NBU, the hryvnia retail loan portfolio in 2018 was 34%, and business loans - only 8%. The results of the first two months of this year continued the current trend: the corporate loan portfolio of banks decreased by 4.2%, including its hryvnia segment - by 2.7%. At the same time, retail loans in hryvnia grew by 2.5%.
The factors affecting credit strategies and preferences of banks, the structure of corporate and retail loan portfolios, the cost of lending and its future prospects were told in the expert column of the authoritative business portal Liga.net Oleg Pakhomov, Deputy Chairman of the Board - Director for Retail Business of the Bank Credit Dnieper.
“There are three key prerequisites for a significant increase in long-term lending to businesses and the public: increasing the level of trust in lending instruments, improving competition and improving credit conditions for borrowers. Their necessary components are economic stability, exchange rate predictability, growth in borrower income and transparency, uniform rules of the game for all financial market participants, and adequate protection of the rights of consumers of financial services and lenders, ”said Oleg Pakhomov.
The full text of the expert material can be found at the link.